Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 

Council report shows Museum café behind forecast

Council report shows Museum café behind forecast

At a meeting of Rotorua District Council’s Operations & Monitoring Committee yesterday [15 May] the council called for a detailed review of the Museum Café operation within the next six months with a view to considering leasing the business to the private sector.

The decision followed presentation of a report on the financial performance of the Museum Café which shows it tracking behind forecast after nine months of the current financial year.

The report reveals the museum café was achieving a reasonable return on funds at 21%, but behind the 36% return estimated in the original business case prepared when the operation was purchased.

However the council says a number of measures are being developed to improve the café’s performance and bring it back on track.

The report, prepared by council finance manager Thomas Collé and chief financial officer (CFO) Dave Foster shows earnings (before interest, taxes, depreciation, and amortisation) for the nine months were $39,133 compared to a budget of $69,750.

The shortfall was primarily caused by wage costs being significantly ahead of budget, although that was slightly offset by a higher gross surplus from trading.

CFO Dave Foster said revenue was expected to be $10,000 under budget at the end of the financial year but the gross margin remained on track with the budget.

“At the current rate of earnings, it would take just under six years to achieve a full return on the funds the council invested to purchase the business, lease and chattels, compared to the business case estimate of approximately two and a quarter years.

“However a number of measures to improve the café’s overall financial performance are currently being reviewed, including staffing levels, opening hours, product wastage and pricing.

Mr Foster said getting the operation back on track and its returns up to expected levels would require only a marginal increase in sales, combined with a decrease in staffing costs.

“Under that scenario, the café could improve its annual return on funds to 36%, and this would provide a full return of funds invested within a three and a half year period.”

Mayor Steve Chadwick said the council was taking a wider look across all current operations and would be assessing whether they should continue to be involved in running businesses like the café.

“The progress report on the café’s current financial performance confirms what many of us thought at the time when the business was purchased on a decision made by the then-Executive Committee of Council. However we’ve moved on since then and I’ll ensure such important decisions will in the future be made by only the full council.”

[ENDS]


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Life And Times Of Peter Dunne

In the end, Mr Pragmatic calmly read the signs of impending defeat and went out on his own terms. You could use any number of clichés to describe Peter Dunne’s exit from Parliament.

The unkind might talk of sinking ships, others could be more reminded of a loaded revolver left on the desk by his Cabinet colleagues as they closed the door behind them, now that the polls in Ohariu had confirmed he was no longer of much use to National. More>>

 

Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>

ALSO:

Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>

ALSO:

Deregistered: Independent Board Decision On Family First

The Board considers that Family First has a purpose to promote its own particular views about marriage and the traditional family that cannot be determined to be for the public benefit in a way previously accepted as charitable... More>>

ALSO:

Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>

ALSO:

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>

ALSO:

Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>

ALSO:

Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election